Company registration number 03880340 (England and Wales)
UMDASCH STORE MAKERS UNITED KINGDOM LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
UMDASCH STORE MAKERS UNITED KINGDOM LTD
COMPANY INFORMATION
Directors
Mr R Fussthaler
Mr S Kirchmair
Mr S C Wait
(Appointed 23 June 2023)
Secretary
Mr A Marsh
Company number
03880340
Registered office
Claremont House
1 Market Square
Bicester
Oxfordshire
OX26 6AA
Auditor
Whitley Stimpson Limited
Penrose House
67 Hightown Road
Banbury
Oxfordshire
OX16 9BE
Business address
The Lambourn
Wyndyke Furlong
Abingdon
Oxon
OX14 1UJ
UMDASCH STORE MAKERS UNITED KINGDOM LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
4 - 5
Directors' responsibilities statement
3
Independent auditor's report
6 - 8
Statement of income and retained earnings
9
Balance sheet
10
Notes to the financial statements
11 - 25
Detailed trading and profit and loss account
Schedule of distribution costs and administrative expenses
UMDASCH STORE MAKERS UNITED KINGDOM LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Review of the business

The results for the year and the financial position of the company at the year end, as detailed on pages 9 to 10, show a turnover of £14.3 million compared to £14.1 million in 2022. Profit before taxation was £0.7 million compared to £1.8 million the previous year, which included £0.8 million of profit arising from the sale of property. Some fluctuation in performance is natural in a project-based business and the directors are confident that the company will continue to grow.

 

The gross profit percentage of 29.7% (2022 28.0%) improved due to overall projects mix.

 

We are on a continued growth path and expanding our team to support the market.

Principal risks and uncertainties

Loss of a major contract

 

The company works mainly in the retail sector and its sales are therefore subject to fluctuations in market conditions impacting our clients’ investment decision making. Furthermore, large sales contracts are typically awarded through a tendering process and the loss of a major contract would impact our overall annual turnover. The company seeks to reduce this risk by careful cost control whilst providing excellent service to our customers in the hope that it can rely on repeat business as well as developing a wider customer base.

 

Workforce risk

 

Attracting and retaining a quality workforce to provide appropriate service levels is of paramount importance to the company. It is necessary to provide challenging but rewarding roles to the best candidates and very important to develop a network of recruiters to allow the company to attract the very best industry talent necessary to fulfil future growth ambitions.

 

Price risk

 

The company does not expect production costs to continue to be impacted in 2024 because of fixed priced contracts with internal and third-party suppliers. However, inflationary pressures particularly on salaries need to be carefully considered.

 

The directors continue to monitor the situation on a day-by-day basis to ensure that wherever possible, corrective action is taken to mitigate the risk to the company.

 

The directors believe that these actions should enable the company to trade for the foreseeable future.

 

Financial risk management

 

The company's operations expose it to a variety of financial risks that include the effects of movements in exchange rates, credit risk and liquidity. To manage this risk the company primarily relies upon Group Treasury functions but also takes advantage of the natural hedge created where our suppliers and clients are both based in Europe.

 

Foreign currency risk

 

Exchange rate risk emerges when commitments are made (orders / contracts) in other currencies than the home currency. A significant proportion of the company’s sales are derived from Europe therefore the primary risk is around the Euro. The company mitigates this by operating a natural hedge.

 

Credit risk

 

The company has policies that require appropriate credit checks on potential customers and suppliers before sales or purchases are made. The amount of exposure to any individual counterparty is mitigated by favourable cashflow terms wherever possible.

UMDASCH STORE MAKERS UNITED KINGDOM LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

Any cash surpluses are collected by Group Finance through the cash pooling process to optimise borrowings at the group level.

 

Liquidity risk

 

The company has a good balance sheet with net current assets of £3.0 million (2022 - £3.3 million). The company has no difficulty in meeting its financial obligations when they become due, especially with the support of Umdasch AG.

Future developments

Umdasch Store Makers United Kingdom Ltd will reposition itself to focus on its core store making activities in 2024 and build on its considerable reputation as a provider of design engineering, manufacturing and installation of bespoke retail stores.

On behalf of the board

Mr R Fussthaler
Director
20 March 2024
UMDASCH STORE MAKERS UNITED KINGDOM LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

UMDASCH STORE MAKERS UNITED KINGDOM LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

The directors present their report and the audited financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company continued to be that of shop fitting services including design, engineering, project management and installation.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends paid during the year amounted to £880,000.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr R Fussthaler
Mr S Kirchmair
Mr S C Wait
(Appointed 23 June 2023)
Directors' insurance

The company maintains insurance policies on behalf of all the directors against liability arising from negligence, breach of duty and breach of trust in relation to the company.

Treasury operations and financial instruments

The financial activities within Umdasch Store Makers United Kingdom Ltd are performed centrally by group treasury, part of Corporate Finance, responsible for all the banking relations and enables the subsidiaries to focus on their core activities while benefiting from the cash management experience available by Umdasch AG. Umdasch AG takes the managerial role in managing the group's cash pool and is responsible for the treasury function.

 

The company’s principal financial instruments comprise financial assets and liabilities such as trade debtors and trade creditors arising directly from its operations. In accordance with the company’s treasury policy, derivative instruments are not entered into for speculative purposes.

Financial risk management

Financial risk management is discussed further in the Strategic Report on pages 1 to 2.

Post reporting date events

There are no significant post-balance sheet events.

Future developments

The directors intend to continue to operate the company with its existing activities, whilst taking advantage of opportunities as they arise. Future developments are discussed further in the Strategic Report on pages 1 to 2.

Auditor

In accordance with the company's articles, a resolution proposing that Whitley Stimpson Limited be reappointed as auditor of the company will be put at a General Meeting.

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's Strategic Report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the Directors' Report. It has done so in respect of the performance of the company and financial risk management.

UMDASCH STORE MAKERS UNITED KINGDOM LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
Statement of disclosure to auditor

In the case of each director in office at the date the Directors’ Report is approved:

 

On behalf of the board
Mr R Fussthaler
Director
20 March 2024
UMDASCH STORE MAKERS UNITED KINGDOM LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF UMDASCH STORE MAKERS UNITED KINGDOM LTD
- 6 -
Opinion

We have audited the financial statements of Umdasch Store Makers United Kingdom Ltd (the 'company') for the year ended 31 December 2023 which comprise the statement of income and retained earnings, the balance sheet and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

 

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

UMDASCH STORE MAKERS UNITED KINGDOM LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF UMDASCH STORE MAKERS UNITED KINGDOM LTD
- 7 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

 

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to the risk of revenue recognition being materially misstated due to fraud, calculation of the warranty provision and management charges, the lack of segregation of duties, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006 and tax legislation.

UMDASCH STORE MAKERS UNITED KINGDOM LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF UMDASCH STORE MAKERS UNITED KINGDOM LTD
- 8 -

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to revenue. Audit procedures performed included:

There are inherent limitations in the audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's member in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's member those matters we are required to state to the member in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's member, for our audit work, for this report, or for the opinions we have formed.

20 March 2024
Michelle Lucas
Senior Statutory Auditor
For and on behalf of Whitley Stimpson Limited
Chartered Accountants
Statutory Auditor
Penrose House
67 Hightown Road
Banbury
Oxfordshire
OX16 9BE
UMDASCH STORE MAKERS UNITED KINGDOM LTD
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
14,270,499
14,070,622
Cost of sales
(9,997,523)
(10,133,370)
Gross profit
4,272,976
3,937,252
Administrative expenses
(3,648,366)
(3,139,819)
Other operating income
141,336
179,769
Profit on disposal of tangible fixed assets
4
-
0
835,450
Operating profit
5
765,946
1,812,652
Interest receivable and similar income
8
7,287
113
Interest payable and similar expenses
9
(8,634)
(30,789)
Profit before taxation
764,599
1,781,976
Tax on profit
10
(202,085)
(202,266)
Profit for the financial year
562,514
1,579,710
Retained earnings brought forward
2,973,049
1,393,339
Dividends
11
(880,000)
-
0
Retained earnings carried forward
2,655,563
2,973,049

The profit and loss account has been prepared on the basis that all operations are continuing operations.

UMDASCH STORE MAKERS UNITED KINGDOM LTD
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
12
5,034
5,610
Tangible assets
13
680,544
818,944
685,578
824,554
Current assets
Stocks
14
31,755
46,129
Debtors
16
4,403,221
5,452,130
Cash at bank and in hand
48,234
1,112,561
4,483,210
6,610,820
Creditors: amounts falling due within one year
17
(1,876,985)
(3,789,241)
Net current assets
2,606,225
2,821,579
Total assets less current liabilities
3,291,803
3,646,133
Provisions for liabilities
Provisions
19
243,287
279,593
Deferred tax liability
20
42,953
43,491
(286,240)
(323,084)
Net assets
3,005,563
3,323,049
Capital and reserves
Called up share capital
22
50,000
50,000
Other reserves
23
300,000
300,000
Profit and loss reserves
2,655,563
2,973,049
Total equity
3,005,563
3,323,049

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 20 March 2024 and are signed on its behalf by:
Mr R Fussthaler
Director
Company registration number 03880340 (England and Wales)
UMDASCH STORE MAKERS UNITED KINGDOM LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information

Umdasch Store Makers United Kingdom Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Claremont House, 1 Market Square, Bicester, Oxfordshire, OX26 6AA.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

Given the company’s continued market growth the directors have considered the company's ability to continue as a going concern. At the balance sheet date, the company had net assets of £true3,005,563 (2022 - £3,323,049), with a net cash position of £48,234 (2022 - £1,112,561).

 

Furthermore, the company has access to group cash pooling facilities which enables the company to manage its cashflows.

 

Accordingly, the directors believe that it is appropriate that these financial statements are prepared on a going concern basis.

1.3
Turnover

Revenue from contracts is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing the amount of hours completed on a contract to the estimated total hours required. Hours incurred on future contracts is not considered within this calculation. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

 

Revenue from goods provided to group companies is recognised at the point when the goods are delivered and risks of ownership transfer to the recipient.

 

Revenue from services provided to group companies is recognised over the period covered by the relevant service.

Interest income is recognised when it is probable that the economic benefits will flow to the company and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and the effective interest rate applicable.

1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software
3% straight line
UMDASCH STORE MAKERS UNITED KINGDOM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
10% straight line
Plant and machinery
12.5% straight line
Fixtures, fittings and equipment
25% straight line
Computer equipment
25% straight line
Motor vehicles
25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.8
Construction contracts

The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of hours incurred for work performed to date compared to the estimated total hours required. Hours incurred in the year in connection with future activity on a contract are excluded from total contracted hours in determining the stage of completion. Contract costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.

UMDASCH STORE MAKERS UNITED KINGDOM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

UMDASCH STORE MAKERS UNITED KINGDOM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
Classification of financial liabilities
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.11
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.12
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

UMDASCH STORE MAKERS UNITED KINGDOM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated, but not reversed, at the balance sheet date where transactions or events that result in an obligation to pay more tax in the future, or a right to pay less tax in the future, have occurred at the balance sheet date. Timing differences are differences between the company's taxable profits and its results as stated in the financial statements that arise from the inclusion of gains and losses in tax assessments in periods different from those in which they are recognised in the financial statements. Deferred tax is measured at the average tax rates that are expected to apply in the periods in which timing differences are expected to reverse, based on tax rates and laws that have been enacted or substantially enacted by the balance sheet date. Deferred tax is measured on a non-discounted basis.

1.13
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.14
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.15
Retirement benefits

The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.

1.16
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.17
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

UMDASCH STORE MAKERS UNITED KINGDOM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements have had the most significant effect on amounts recognised in the financial statements.

Stage of completion of construction contracts

In accordance with the company's revenue recognition policy, turnover and costs are recognised based on the stage of completion for projects on a project-by-project basis. Whilst the stage of completion is calculated based on the proportion of hours completed on the project compared to budget, judgement is exercised by management to determine any adjustments required to the margin recognised on each project, particularly where this calculation does not align with the knowledge of the experienced project managers.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Budgeted costs incurred against construction contracts

In accordance with the financial reporting requirement of FRS 102 Section 23, amounts recognised in the financial statements for construction contracts are measured based on the use of stage of completion, contract values and forecasted costs. Estimation is required by management to determine the total costs that will be incurred for each project, with this being based on discussions with customers, project managers and sales managers to identify the required materials, labour, designs etc to be incurred on each project.

 

Due to unpredictability of cost changes, for example, due to inflation, together with changes to the scope of work required on projects, there remains uncertainty in the calculation of contract costs and therefore, the final costs incurred on each project could differ significantly to the initial estimate.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Sales
14,270,499
14,070,622
UMDASCH STORE MAKERS UNITED KINGDOM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 17 -
2023
2022
£
£
Turnover analysed by geographical market
UK
7,201,615
7,672,267
European Union
5,620,343
5,577,143
Rest of World
1,448,541
821,212
14,270,499
14,070,622
2023
2022
£
£
Other revenue
Interest income
7,287
113
4
Exceptional item
2023
2022
£
£
Profit on disposal of tangible fixed assets
-
(835,450)

The exceptional item arising during the year ended 31 December 2022 is a profit on the disposal of tangible fixed assets.

5
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
116,138
(2,627)
Fees payable to the company's auditor for the audit of the company's financial statements
17,000
17,000
Depreciation of owned tangible fixed assets
147,453
82,722
Profit on disposal of tangible fixed assets
-
(5,816)
Amortisation of intangible assets
576
144
Operating lease charges
152,549
19,998
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
All employees
28
24
UMDASCH STORE MAKERS UNITED KINGDOM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Employees
(Continued)
- 18 -

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,990,901
1,568,838
Social security costs
225,230
178,259
Pension costs
149,886
102,127
2,366,017
1,849,224
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
333,539
279,709
Company pension contributions to defined contribution schemes
31,228
20,886
364,767
300,595

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 1).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
264,588
279,709
Company pension contributions to defined contribution schemes
26,228
20,886
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
7,287
113
9
Interest payable and similar expenses
2023
2022
£
£
Interest payable to group undertakings
5,543
5,342
Other interest on financial liabilities
3,091
25,447
8,634
30,789
UMDASCH STORE MAKERS UNITED KINGDOM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
168,435
122,295
Adjustments in respect of prior periods
34,188
5,419
Total current tax
202,623
127,714
Deferred tax
Origination and reversal of timing differences
(538)
74,552
Total tax charge
202,085
202,266

On the 1 April 2023 the rate of corporation tax in the UK was raised from 19% to 25%.

 

This gave an effective corporation tax rate of 23.52% (2022 - 19%).

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
764,599
1,781,976
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
179,841
338,575
Tax effect of expenses that are not deductible in determining taxable profit
949
5,004
Tax effect of income not taxable in determining taxable profit
(33,243)
(25,688)
Unutilised tax losses carried forward
-
0
(5,863)
Adjustments in respect of prior years
34,188
10,838
Effect of change in corporation tax rate
(198)
18,214
Permanent capital allowances in excess of depreciation
(158)
(23,995)
Depreciation on assets not qualifying for tax allowances
1,858
300
Research and development tax credit
33,243
19,827
Deferred tax adjustments in respect of prior years
2,744
-
0
Other tax adjustments
(17,139)
(50,161)
Indexation allowance on chargeable gains
-
0
(47,440)
Depreciation on disposed assets not qualifying for capital allowances
-
0
(37,345)
Taxation charge for the year
202,085
202,266
11
Dividends
2023
2022
£
£
Interim paid
880,000
-
0
UMDASCH STORE MAKERS UNITED KINGDOM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
12
Intangible fixed assets
Software
£
Cost
At 1 January 2023 and 31 December 2023
5,754
Amortisation and impairment
At 1 January 2023
144
Amortisation charged for the year
576
At 31 December 2023
720
Carrying amount
At 31 December 2023
5,034
At 31 December 2022
5,610
13
Tangible fixed assets
Leasehold improvements
Plant and machinery
Fixtures, fittings and equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2023
541,204
7,865
252,838
52,597
139,364
993,868
Additions
-
0
-
0
-
0
9,053
-
0
9,053
At 31 December 2023
541,204
7,865
252,838
61,650
139,364
1,002,921
Depreciation and impairment
At 1 January 2023
15,971
199
40,341
19,427
98,986
174,924
Depreciation charged in the year
63,488
787
49,149
11,071
22,958
147,453
At 31 December 2023
79,459
986
89,490
30,498
121,944
322,377
Carrying amount
At 31 December 2023
461,745
6,879
163,348
31,152
17,420
680,544
At 31 December 2022
525,233
7,666
212,497
33,170
40,378
818,944
14
Stocks
2023
2022
£
£
Finished goods and goods for resale
31,755
46,129
UMDASCH STORE MAKERS UNITED KINGDOM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
15
Construction contracts
2023
£
Contracts in progress at the reporting date
Gross amounts owed by contract customers included in debtors
405,675
Gross amounts owed to contract customers included in creditors
(310,971)
Contract revenues recognised
Contract costs incurred plus recognised profits less recognised losses to date
32,454,061
Less: progress billing
(32,359,357)
94,704

Advances received from customers for contract work amounted to £0 (2022 - £0).

16
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,580,827
4,026,175
Gross amounts owed by contract customers
405,675
1,032,651
Corporation tax recoverable
-
0
12,903
Amounts owed by group undertakings
1,193,160
165,176
Other debtors
10,000
249
Prepayments and accrued income
166,627
172,400
4,356,289
5,409,554
2023
2022
Amounts falling due after more than one year:
£
£
Other debtors
46,932
42,576
Total debtors
4,403,221
5,452,130

Trade debtors are stated net of a £75,655 provision for doubtful debts (2022: £182,780)

UMDASCH STORE MAKERS UNITED KINGDOM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
17
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and overdrafts
18
10
-
0
Payments received on account
93,420
(26,739)
Trade creditors
423,859
1,180,706
Gross amounts owed to contract customers
310,971
838,565
Amounts owed to group undertakings
43,182
1,144,679
Corporation tax
15,589
-
0
Other taxation and social security
658,253
329,567
Other creditors
18,815
40,153
Accruals and deferred income
312,886
282,310
1,876,985
3,789,241
18
Loans and overdrafts
2023
2022
£
£
Bank overdrafts
10
-
0
Payable within one year
10
-
0
19
Provisions for liabilities
2023
2022
£
£
Onerous contracts
6,004
44,885
Dilapidations of leasehold property
97,283
97,283
Warranty provision
140,000
137,425
243,287
279,593
Movements on provisions:
Onerous contracts
Dilapidations of leasehold property
Warranty provision
Total
£
£
£
£
At 1 January 2023
44,885
97,283
137,425
279,593
Additional provisions in the year
130,421
-
2,575
132,996
Utilisation of provision
(169,302)
-
-
(169,302)
At 31 December 2023
6,004
97,283
140,000
243,287
UMDASCH STORE MAKERS UNITED KINGDOM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
19
Provisions for liabilities
(Continued)
- 23 -

Onerous contracts arise from the expectation of incurring losses on projects completed by the company. Any losses expected are presented within a provision, with all losses expected to be incurred within 12 months of the reporting date.

 

Losses are uncertain where there is the possibility of further costs associated with the contract. In these cases, the company would be required to absorb the costs of rectification work where customers are not satisfied with the work performed under the terms of the agreed contract.

A dilapidation provision is required in relation to the work expected to be necessary to restore a leasehold property to its original condition at the point of expiry of the lease.

 

Payments are expected to be made at the expiration of the lease in July 2032. Amounts included within this provision are based on estimates obtained from third parties for the work required to reinstate the property to its original state. Uncertainties arise in relation to this for variances in the costs required to restore the property to its original condition, for example, due to inflationary rises of costs.

 

No amounts are expected to be reimbursed to the company in relation to this work.

Warranties are provided to customers in relation to work completed by the company, where, should the warranty be required, the company would be required to bear the cost of rectification for defective work.

 

Customers are eligible to make warranty claims against the company for a period of up to 24 months from the point of installation.

 

Costs of settling warranty claims are uncertain due to the differences in the scope of work required for each project, with differences arising in the extent of the warranty correction work dependent on the level of work completed for each unique project.

20
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
99,832
127,513
Tax losses
-
(5,863)
Retirement benefit obligations
(2,965)
(2,629)
Other timing differences
(53,914)
(75,530)
42,953
43,491
2023
Movements in the year:
£
Liability at 1 January 2023
43,491
Credit to profit or loss
(538)
Liability at 31 December 2023
42,953
UMDASCH STORE MAKERS UNITED KINGDOM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
20
Deferred taxation
(Continued)
- 24 -

The deferred tax liability set out above is expected to reverse in part within 12 months as the accelerated capital allowances mature within the same period.

21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
149,886
102,127

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

22
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
50,000
50,000
50,000
50,000

The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the company. All ordinary shares rank equally with regard to the company's residual assets.

23
Own shares reserve

The capital contribution reserve represents a capital contribution arising on cash received from the parent company.

24
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
131,277
131,277
Between two and five years
525,110
525,110
In over five years
459,471
623,568
1,115,858
1,279,955

During the year to 31 December 2023, £130,625 (2022: £65,639) has been recognised as an expense for non-cancellable operating leases.

25
Related party transactions
UMDASCH STORE MAKERS UNITED KINGDOM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
25
Related party transactions
(Continued)
- 25 -

In accordance with section 33.1A of FRS 102 disclosure is not given in these financial statements of transactions entered into between two or more members of the Umdasch group, provided that any subsidiary which is party to the transaction is wholly owned within the group.

26
Ultimate controlling party

The company is a wholly owned subsidiary of Umdasch Store Makers Management GmbH, a company which is incorporated in Austria. Umdasch Store Makers Management GmbH's registered office is Josef Umdasch Platz 1, 3300 Amstetten, Austria.

The ultimate parent company is Umdasch Group AG, incorporated in Austria, by virtue of its 100% shareholding in Umdasch Store Makers Management GmbH.

 

Umdasch Group AG is the company which prepares the group's consolidated financial statements. Copies of the consolidated financial statements can be obtained from Josef Umdasch Platz 1, 3300 Amstetten, Austria.

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